a.Please complete the following sentence. One difference between a monopoly and a perfectly competitive firm is thata.only a monopoly faces a downward sloping demand curve.O b.only a perfectly competitive firm produces its optimal level of output by setting marginal revenue equal to marginalcost.O c.O d.O e.b.only a perfectly competitive firm faces a downward sloping demand curve.only a monopoly produces its optimal level of output by setting marginal revenue equal to marginal cost.only a monopoly is a price taker.Please complete the following statement. When isoquants are convexO a.O b.C.the marginal rate of technical substitution rises as the quantity of labour increases.none of the other options.O c.labor, but not capital, is subject to the law of diminishing marginal returns.O d.the marginal rate of technical substitution falls as the quantity of labour increases.O e.as labour increases and capital decreases, both the marginal product of capital and labour decrease.Please complete the following sentence. Monopolistic competition and perfect competition differ becausea. only monopolistic competition allows for entry of other firms in the long run.O b.only perfectly competitive firms take the price as given.O c.none of the other options.O d. only monopolistically competitive firms will set MR = MC to produce the optimal level of output.O e. only perfectly competitive firms will set MR = MC to produce the optimal level of output.

A firm structure where there are lots of little businesses producing the same kinds of goods, but…

Please complete the following sentence. One difference between a monopoly and a perfectly competitive firm is that O a. only a monopoly faces a downward sloping demand curve. O b. only a perfectly competitive firm produces its optimal level of output by setting marginal revenue equal to marginal cost. O c. only a perfectly competitive firm faces a downward sloping demand curve. d. only a monopoly produces its optimal level of output by setting marginal revenue equal to marginal cost. e. only a monopoly is a price taker.

Please complete the following sentence. One difference between a monopoly and a perfectly competitive firm is that O a. only a monopoly faces a downward sloping demand curve. O b. only a perfectly competitive firm produces its optimal level of output by setting marginal revenue equal to marginal cost. O c. only a perfectly competitive firm faces a downward sloping demand curve. d. only a monopoly produces its optimal level of output by setting marginal revenue equal to marginal cost. e. only a monopoly is a price taker.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 6RQ: How is the perceived demand curve for a monopolistically competitive film different from the...

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The figure to the right shows the average cost of production (AC) for a cable company that is a monopoly as well as the corresponding demand (D) for cable subscriptions in the city to which the company provides service. Is this company a natural monopoly? This firm O A. is a natural monopoly because average cost is decreasing when it crosses demand. B. is not a natural monopoly because its demand is downward sloping. C. is a natural monopoly because total cost does not always increase with output. O D. is a natural monopoly because it has excess capacity. O E. is not a natural monopoly because it must advertise. Price (dollars per subscription) 80- 76- 72- 68- 64- 60- 56- 52- 48- 44- 40- 36- 32- 28- 24- 20- 16- 12- 8- 4- 0- D AC 5 6 8 9 Quantity (cable subscriptions in 1000s) Ⓡ 10
The graph shows the average cost, marginal cost, demand, and marginal revenue curves for a monopoly firm. If the firm produces 45 units of output per day, it Price Average (dollars Marginal cost per unit) 10 cost 8 4 Demand Marginal revenue 10 20 30 40 45 Quantity (units per day) Select one: O a. will be maximizing profit. O b. will be able to increase profit by producing less per day. O c. will charge a price that exceeds its marginal cost. O d. will be able to increase profit by producing more per day.
Over a recent family dinner, your Aunt Trudy expresses her disdain for price discriminating monopoly businesses, to which you, having taken some economics reply, "A perfect price discriminating monopoly may convert all of the consumer surplus to monopoly profit, but at least it produces O A. more output than a competitive industry would produce. OB. the same output that a competitive industry would produce. C. at the minimum of its average total cost (ATC) curve. D. where its marginal cost (MC) curve is still declining.
Assume a monopoly firm has a downward sloping linear demand curve and cannot price discriminate. What happens to the firm's marginal revenue as it sells additional units? Select one: O a. Marginal revenue increases. O b. Marginal revenue is constant. O c. Marginal revenue increases then decreases. d. Marginal revenue decreases then increases. e. Marginal revenue decreases.
ystem (Academic) Mes of Microeconomics || Fall20 Suppose a monopolist's costs and revenues are as follows. ATC = S50, MC = $35; MR = $40; P $55. The firm should of Select one: O a. decrease output and increase price. tion O b. increase output and decrease price. O c not change output or price. O d. shut down. Next page s page 00 HUAWEI Nova 3 Al CAMERA
Which of the following is correct? O A purely competitive firm is a "price taker," while a monopolist is a "price maker." OA purely competitive firm is a "price maker," while a monopolist is a "price taker." O Both purely competitive and monopolistic firms are "price takers." Both purely competitive and monopolistic firms are "price makers."
By approximately how much did the price of the heart drug for babies increase when a monopoly was established?
The following graph gives cost and revenue data for a monopolist: Costs and revenues $100 90 BO 70 60 50 40 30 20 10 20 40 60 MR Select one: OA. $60 and 40. OB. $10 and 70. O C. $25 and 110. OD. $30 and 100. OE. $45 and 70. 80 MC 100 120 140 Quantity per period Refer to the above graph to answer this question. If the monopolist is regulated and forced to charge the socially optimum price, what will be its price and output? Q no 9 Fir Tir
QUESTION 12 The table below shows a monopolist's demand curve and the cost information for the production of its good. What will their profits equal? Quantity Price per UnitTotal Cost 10 $100 20 $80 $60 $40 $20 O 30 40 50 a. $600 O b. $1,200 O c. $1,600 O d. $1,000 $100 $400 $800 $1,400 $2,400
The American market for shoes is a good example of monopolistic competition. In a situation where Adidas is earning a large economic profit in the short-run, Nikemay try to increase their advertising to capture some of that business, If Nike is successful in their campaign, what would happen to the demand curve for Adidas and the price at which they can sell?O a. The demand curve shifts up and to the right, and the price rises.O b. The demand curve shifts up and to the right, and the price falls.O c. The demand curve shifts down and to the left, and the price walls.O d. The demand curve shifts down and to the left, and the price rises.Oe. Nike cannot affect the demand for Adidas since this is a monopolistically competitive market.
Which of the following is a difference between a monopolistically compettive market and a monopoly in the long run? OA. Firms in a monopolistically competitive market eam zero economic profits in the long run, while a monopolist incurs losses in the long run. B. Firms in a monopolistically competitive market charge a price higher than marginal cast in the long run, while a monopolist charges a price equal to marginal cast in the long run OC. Firms in a monopolistically competitive market car zero economic profits in the long run, while a monopolist usually carns positive economic profits in the long run. OD. Firms in a monopolistically competitive market charge a price lower than merginal cost in the long run, while a monopolist charges a price equal to merginel cost in the long run.
Why does a monopoly arise? O because of diseconomies of scale because entry to an industry is blocked because of elastic demand because firms want to maximize profits